As the June 3 local elections conclude, discussions surrounding the regulation of delivery platform fees are reigniting. The push from small business owners for legal caps on fees is intensifying, coinciding with the upcoming announcement of the Fair Trade Commission's sanctions and the impending sale of Baemin, valued at over 8 trillion won, which is just a month away.
On June 11, industry sources reported that the Democratic Party's Euljiro Committee, delivery app companies, and small business associations are discussing the resumption of social dialogue regarding delivery platforms, which had been effectively stalled. Although they convened in April for a cooperative meeting, internal disagreements among the participating organizations and the election period have left discussions in limbo for over a month.
In the meantime, delivery platform associations are actively campaigning for a national petition in the National Assembly to legislate a cap on delivery app fees. They are accelerating efforts to shape public opinion on this issue.
Market observers are closely watching the Fair Trade Commission's ongoing review of agreements involving Baemin and Coupang Eats. The Commission is currently conducting a detailed examination of potential violations of fair trade laws by these delivery platforms, with a key point of interest being whether the self-correction measures proposed by the companies will include significant fee reductions that small business owners can feel.
The outcome of the Fair Trade Commission's review and the level of legislative regulation are expected to significantly impact the future landscape of the domestic delivery platform market, especially in light of the major merger and acquisition (M&A) activity anticipated. The issue of delivery app fees is a campaign promise made by President Lee Jae-myung and the Democratic Party, raising the possibility of legislation if self-regulation is deemed insufficient.
Delivery Hero (DH), the parent company of Woowa Brothers, which operates Baemin, is in the process of selling its stake, with the main bidding scheduled for July 21. Reports indicate that DH is seeking a sale price of approximately 8 trillion won.
Market reactions are cautious. To justify the 8 trillion won valuation, a sustainable revenue model must be assured, as the results of the government's review and the National Assembly's moves toward fee regulation pose judicial and policy risks that could diminish Baemin's future revenue value.
An industry insider stated, "As the main bidding approaches in July, the most sensitive point of focus is the government's regulatory threshold for platform fees. The results of the Fair Trade Commission's review and the legislative pace in the National Assembly could affect Baemin's valuation, making the forthcoming social dialogue on platforms a crucial compass for the success of the sale."
* This article has been translated by AI.
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